Applicability of commodity derivatives circulars governs transfer of exchange-specific norms to commodity derivatives segments, ensuring unified regulatory treatment.
SEBI clarifies that circulars and operational norms issued for Commodity Derivatives Exchanges shall apply to the Commodity Derivatives Segments of recognised stock exchanges and recognised clearing corporations following removal of the separate exchange category, ensuring unified regulatory treatment; the circular states that existing norms apply to the extent relevant and identifies the effective date and the regulator's investor-protection mandate.

FPI eligibility rules limit NRI/OCI/RI ownership and control and require manager registration, with specified exceptions.
SEBI clarifies that beneficial ownership under PMLA Rules applies only for KYC and not for FPI eligibility; NRIs/OCIs/RIs may be constituents if a single contribution is below 25% and aggregate contributions are below 50%, and they are not in control of the FPI. Investment managers owned or controlled by NRIs/OCIs/RIs may control FPIs only if the IM is regulated and registers as a non-investing FPI or is incorporated and registered in India. Exceptions include FPIs investing only in mutual funds and offshore funds with a no-objection certificate. A two-year transition and a 90-day cure period are provided.

Beneficial ownership identification under PMLA Rules mandates look through KYC and risk based periodic review with secured data access.
Identification and verification of beneficial owners for Category II and III FPIs must follow Rule 9 of the PMLA Rules: FPIs must maintain a certified list of BOs (Annexure A), apply a materiality threshold at the FPI level and on a look through basis to intermediate shareholders/owner entities (with Annexure B disclosures), identify senior managing officials, and disclose ownership or control exercised through voting rights, agreements or arrangements. Enhanced due diligence applies to FPIs from high risk jurisdictions and Category III FPIs must furnish prescribed financial data; periodic, risk based KYC reviews and secured KRA access to BO data are required, with record retention and compliance timelines.

Rating review procedure requires a distinct majority committee with at least one third independent members to reconsider issuer requests.
CRAs may rate financial instruments under guidelines of specified financial sector regulators and undertake incidental research. Requests by issuers for rating review must be examined by a rating committee with a majority of members different from those who assigned the earlier rating and with at least one third independent members; all other provisions of the earlier circular remain unchanged.

Commodity derivatives market regulation: consolidated SEBI framework imposing governance, product, warehousing, risk and cyber resilience norms.
Master Circular consolidates SEBI directives for the commodity derivatives market requiring exchanges to comply with SCRA and SECC Regulations, segregate clearing and settlement to a separate clearing corporation within timelines, satisfy networth, ownership and governance norms, and maintain oversight, compliance and disclosure regimes. It prescribes uniform trading/product rules (UCC/PAN, DPL, position limits, options design), detailed warehousing accreditation and operational standards for WSPs/assayers, and a comprehensive risk management framework (real time margins, ELM, concentration margins, SGF, BMC, risk reduction mode). Technology, annual system audits, BCP/DR and a cyber security/resilience framework are mandated.

Extension of SLB trading hours allows exchanges to set schedules subject to enhanced risk management and infrastructure requirements.
Recognized stock exchanges may set trading hours for the Securities Lending and Borrowing (SLB) Segment within the permitted daily window provided the exchange and its clearing corporation maintain risk management systems and operational infrastructure commensurate with those hours to facilitate physical settlement of equity derivatives, amending the prior time-window provision and issued under SEBI's regulatory powers to protect investors and develop the securities market.

FPI KYC compliance timelines extended to allow submission of beneficial owner lists, structural changes, and documentary updates.
Timelines for specified KYC requirements for Foreign Portfolio Investors under the April 10, 2018 circular are extended to December 31, 2018. The extension covers submission of beneficial owner lists, structural conformity adjustments, investor identification under the Prevention of Money laundering Rules, furnishing of prescribed documents, and ensuring compliance with aggregated foreign ownership limits. All other provisions of the original circular remain unchanged and custodians/DDPs are to inform FPI clients.

Electronic private placement rules: closed bidding and escrow settlement permitted, with yield time priority allotment required.
Regulatory revisions expand the electronic private placement regime to allow closed bidding, multiple yield allotment, and multiple investor bids, with allotment governed by yield time priority (yield first, then time, then pro rata). Settlement may occur via issuer escrow bank accounts or clearing corporation, with escrow pay ins restricted to bank accounts registered in the EBP system, RTA reconciliation obligations, and escrow release of funds only after RTA triggered corporate action instructions to depositories. Depositories may act as Electronic Book Providers and EBPs must update systems and disclosures accordingly.

ASBA facility required; streamlined processing and accelerated listing timetable for public issues of debt securities and related instruments.
Issuance procedures require mandatory use of the Application Supported by Blocked Amount (ASBA) facility for public issues of debt securities, NCRPS and SDI; investors must submit ASBA bid-cum-application forms to SCSBs or specified intermediaries, who shall acknowledge receipt, capture and upload bid data to the stock exchange electronic bidding system, and in the case of SCSBs block funds in investor accounts. Stock exchanges will validate bid data with depositories, allow limited field modifications, provide investor status facilities, and coordinate with registrars, SCSBs and depositories to reconcile bids, determine allotment, effect demat credit and enable listing and trading under an accelerated post-issue timeline.

Enhanced monitoring requirements for registrars mandate board approved risk, data protection, continuity policies and periodic regulatory reporting.
QRTAs must adopt a Board approved policy framework requiring integrated risk management (operational, fraud, technology, cyber and business risks), robust data access and protection protocols with onshore data residency and off site backups, tested Business Continuity Plans with off site recovery centers and wind down plans, scalable infrastructure, insurance for operational risks, documented operations manuals, and establishment of Board committees to oversee governance, with mandatory quarterly Board reviewed enhanced reporting in the prescribed format.

Discontinuation of Sub-Broker registration: existing sub brokers must migrate to Authorized Person or Trading Member by deadline.
SEBI discontinues the category of Sub-Broker as a SEBI-registered intermediary, stops fresh registrations, and requires registered Sub-Brokers to migrate to act as an Authorized Person or become a Trading Member by the prescribed deadline; failure to migrate will be treated as deemed surrender and registration will be withdrawn. Exchanges must facilitate migration/registration, amend bye-laws, refund renewal fees paid beyond the specified year on recommendation, publicise the changes, monitor compliance and report implementation to SEBI.

Extension of timeline for initial PAN and bank details request; reminders may be sent by ordinary post or courier.
Extension granted for RTAs to send the initial Registered/Speed Post letter requesting shareholders' PAN and bank details together with Annual Reports/AGM notices; subsequently two reminders may be sent by other modes including ordinary post or courier.

Investor group investment limits: primary market allotment must be validated to prevent breaches through PAN and depository checks.
Registrars and Transfer Agents must use Permanent Account Number for single-FPI compliance checks and obtain validation from depositories that no investor or investor group breaches prescribed investment limits at the time of finalising basis of allotment. Designated Depository Participants supply FPI identification details to depositories for investor group monitoring, and depositories must implement systems to share validation information with RTAs within SEBI-prescribed issuance timelines.

Prohibition on cash acceptance by stock brokers mandates non-cash settlements via electronic transfers or account-payee cheques.
Brokers are prohibited from accepting cash from clients directly or by depositing cash into the broker's bank account; payments must be by account payee crossed cheques, demand drafts, direct credit via electronic fund transfer, or other RBI permitted modes, with brokers accepting cheques only if drawn by clients and issuing cheques only in favour of clients.

Core SGF and standardized stress testing required for commodity derivatives clearing corporations to assess credit exposure and MRC adequacy.
Clearing Corporations clearing commodity derivatives must implement a Core Settlement Guarantee Fund framework and a modified standardised daily stress testing regime to assess credit exposure. The circular prescribes specific historical and hypothetical scenarios, end-of-day testing assumptions, client-level residual loss aggregation, inclusion of proprietary losses, collateral haircutting, and coverage calculations for simultaneous defaults of the two largest-exposure members and a percentage of total-member simultaneous default exposure, with phased implementation timelines.

Mutual funds: SEBI master circular consolidates offer document, disclosure, governance, valuation, redemption and distribution rules.
The Master Circular compiles SEBI circulars (effective as of 05 June 2018) governing mutual funds, prescribing operative requirements for offer documents (SID, SAI, KIM) including filing, format, updates and investor communications; detailed disclosure and reporting obligations (portfolio uploads, reports, AUM and commission disclosures); governance and risk frameworks (trustee/independent director tenure, audit/valuation committees, systems audits, stress testing, in house credit assessment); valuation and NAV methodologies and cut off/timestamp rules; conditions and procedure for restriction on redemption; and distribution, intermediary due diligence, certification and transaction mechanics including dematerialisation and AML/KYC requirements.

Dividend-triggered strike price adjustment for stock options applies when dividend threshold met or timeline exemption is sought.
Adjustment in strike price for stock option contracts is required when dividends meet the prescribed threshold or when a listed entity has sought an exemption from listing-timeline obligations; existing corporate-action adjustment principles remain unchanged. Stock exchanges must implement systems, amend bye-laws and notify members and the market.

Anti Money Laundering Compliance: intermediaries must apply risk based CDD, monitor transactions, and report suspicious activity promptly.
Intermediaries must adopt written AML/CFT procedures under the PMLA, implement risk sensitive Client Due Diligence including identification and verification of beneficial owners and PEPs, maintain transaction monitoring and record retention to permit reconstruction, and report specified cash and suspicious transactions to FIU IND within prescribed timelines while preserving confidentiality; senior management must appoint a Principal Officer and Designated Director and ensure internal audit, staff training and cooperation with asset freezing and sanctions procedures.

Overseas investment limit increased for AIFs/VCFs; mandatory timely reporting of utilization and surrender on SEBI portal.
SEBI increases the overseas investment limit for AIFs and VCFs and requires reporting on the SEBI intermediary portal: utilization must be reported within five working days of use; non utilisation or partial non utilisation after the six month validity period must be reported within two working days of expiry; and any surrender of the overseas limit within the validity period must be reported within two working days of the decision. Other prior terms and conditions remain unchanged.

Term Sheet Requirement: Angel funds must file a scheme term sheet specifying material information and compliance particulars.
SEBI requires Angel Funds to file a prescribed term sheet when launching schemes, containing material information (investee profile, investment size, securities, valuation, fees, exit provisions, distribution waterfall, lock-in and co-investment). The term sheet must be filed with the Board within ten days of scheme launch and follow Annexure II. Amendments update references to the Companies Act, 2013 and state that the Companies Act applies to Angel Funds formed as companies. The term sheet must evidence compliance with AIF provisions including investor lists, corpus conditions, investment limits, sponsor and manager continuing interest, investor approvals, and material change reporting.